Recovery of overpaid state pension after death

p00hsticks

Pollycat said:

Thanks for the replies.
powerwilly - the first link is particularly interesting, especially the link to Paul Lewis's Moneybox.
But a later post by Gorf123 contradicts what Paul Lewis says about DWP having no powers to recover the overpayment.

However, the DWP has the right not only to take any recent benefit overpayment back (which is not unreasonable), but also to investigate whether the deceased has received payments they were not entitled in the past.

As I read it, the Paul Lewis article differentiates between two distinct (but possibly overlapping) scenarios - Overpayment of State Pension as a result of a payment being made after the person has died, and overpayment of mean-tested benefits such as Pension Credit, where circumstances come to light after the persons desth that indicate that the person may have been mis-reporting their circumstances whilst alive and therefore was either being awarded too much or should not have been entitled at all.

DWP have no right to reclaim the former, but can and will investigate the latter and are within their rights to ask for any money to be repaid (anecdotely, often such an investigation is triggered by DWP seeing an unexpectedly high probate value ,which is due to the value of the deceaseds residence being included, and would not have precluded them from rightfully claiming Pension Credit).

TELLIT01

Can you provide a link to any evidence to support the statement that overpayment of State Pension cannot be recovered?  It could save a lot of people a lot of stress in the future.

Pollycat

TELLIT01 said:

Can you provide a link to any evidence to support the statement that overpayment of State Pension cannot be recovered?  It could save a lot of people a lot of stress in the future.

It was in this thread:
Bereavement and State Pension Repayment - Page 4 — MoneySavingExpert Forum

here:
Paul Lewis Money: DWP CANNOT ENFORCE DEMANDS TO REPAY PENSIONS PAID AFTER DEATH

As Mum was only in receipt of state pension and Pensions Savings Credit, I don't think there will be an issue.
Before going into a care home, she was in receipt of AA.
And she was in receipt of pension credit until Dad died 11 years ago (he was in a care home so they had separate PC claims) and her increased state pension took her over the PC limit.

Gig1968

Hi

I had a completely opposite situation to yourself. I used the system to tell us once about my mom's death. Within ten days i had a letter asking for a repayment of £49.37 as that was part of the weeks pensions that they had overpaid, because she died on a Sunday. I was grieving at the time and that made me bloody fuming that the government was chasing after such a short period after death.I got on the phone explained the situation and the woman said it was wrong to do it so quickly, and would not to have to pay it as she would cancel it on the system. During the conversation she told me that all benefit/ pension repayments after death are not legally recoverable. The DWP just send a letter in the hope that people pay.

badmemory

It would be rare for the state pension to be an overpayment of any size, unless the death was late being registered.  The bigger problem always seems to be pension credit as p00hsticks says.  There are cases of the recipient of pension credit saving the money leaving them with too much in savings & therefore not entitled to some or all of the money, also other ones which they investigate when it turns out that the estate is larger than the limit because of a house sale.

This is one of those occasions where I actually have some (but not too much) sympathy for the DWP.  They are stuck because they are required to investigate & that investigation often causes family to become upset

Gig1968

Having lost a parent and being in the grieving process I probably overreacted, when a letter landed on the doormat asking for fifty quid back. But you are right. The DWp are doing what they have to do which is to try and recover the overpayment, but timing was the upsetting factor here. You are under no legal obligation to repay the overpaynment

badmemory

Gig1968 said:

 You are under no legal obligation to repay the overpaynment

I believe you are though if it is an overpayment of pension credit if it is caused by the recipient not giving them the correct info.

Gig1968

Not according to the DWP advisor I spoke with. Their policy is to send a letter out as they are expected to do under governmental rules of overpayments. However that is a formal process that has to be completed. After speaking with DWP,  the brevement team advisor I spoke with said they will never chase payment if the amount due was for an insignificant amount of less than £300, It is unlikely to be that much unless their has been a problem registering the death or that the DWP has not been informed.
I never paid the money my mom owed the DWP as the brevement officer agreed that the letter was sent out to quickly after my mom's death, and I wouldn't have anyway after she told me it wasn't enforceable. 

Spendless

Hi, My MIL died early October last year. Family also used the tell us once service. There were a couple of overpayments from places that eventually asked them for them back plus the FD having missed 2 items off their bill that they discovered and sent a bill for weeks later. Can't remember exact timescale but I'd say it was definitely all sorted within 6 months. I'm pretty sure I once read on here about keeping back £x to allow for this and distributing it only once a certain timespan was up. 

Rodders53

Five years ago we got letters from DWP demanding an  overpayment of my late Mother in Law's Pension.

They managed to reclaim it from her closed Nationwide Bank account and yet still wrote asking  for it.

So don't do anything until you are sure they've not recalled any payments from purportedly closed accounts!!